Majes Siguas II obtains addendum 13 in Arequipa

By Robert Orihuela Q.

It was a meeting of almost five hours, full of outbursts and changes of opinion at the last minute. The predictions of days before did not work. At the last minute, the fate of Majes II was in the hands of the president of the regional plenary session, Joseph Louis Hanccowho gave the surprise.

Addendum 13 raises the technological change in the irrigation system of the 38,500 hectares that are expected to be installed in the Siguas pampas. At the beginning, the distribution of water was planned through open channels, but the concessionaire argued that the change should be made to closed and pressurized pipes to reduce losses due to evaporation and filtration.

All this change will cost US$104 million, which raises the investment in the project to US$655 million. The second stage is conceived to develop agro-export agriculture and electricity generation. It is expected to generate more than 186,000 jobs, between direct and indirect, and US$ 1,570 million per year, in addition to contributing to 0.7% of the GDP.

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The approval of this addendum had two positions. On the one hand, there was the president of the Agriculture and Irrigation Commission, Elmer Pinto, for whom the deal with the concessionaire represents a “subordination” to the company’s threats of arbitration. He assured that the project would end up costing US$128 million more with taxes.

Pinto said that, as the Comptroller pointed out, two of the three new circumstances to propose technological change were not valid: water losses due to evaporation and filtrations and the lower flow delivered by the Apurímac River to the Angostura dam. Both already knew each other before the signing of the contract, which was in 2010. However, the rule indicates that an argument is enough to consider the addendum valid.

This was argued by the counselor Harberth Zunigawho presented the minority opinion in favor of the addendum, considering that “such an important project could not continue to be expected” for Arequipa and the country, for which he asked to address the debate about the social size of the parcels while construction ends. “Sadly, the addendum is the only way to revive Majes. If not, we risk two arbitrations by Cobra and England Energywhich won the concession to build two hydroelectric plants”, he blurted out.

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After the intervention of the directors, the vote was given. Five voted against and five in favor. The casting vote was in the hands of Hancco, who had expressed his position against it, so everything suggested that he would ratify his vote. So, he asked for an intermediate room and summoned all the counselors to his office. They were there just five minutes and left. Hancco noted that he made the decision to support Zúñiga’s motion and voted in favor of the addendum.

The reasons for the change did not want to explain them. But La República obtained photographs of a WhatsApp conversation that Zúñiga had with the governor while the session was taking place. There the counselor asks him to ensure Hancco’s vote, because Hancco had told him very early that he would vote against. “Everything makes it clear that the governor interceded because there is no other way to explain her change of mind. In any case, it was for the benefit of Arequipa”, indicated the counselor Zúñiga when consulted.

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Irrigation. Before ending the session, the Regional Council elected the members of the Special Monitoring Commission of Majes Siguas II.

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Stamp. GORE Arequipa must now sign the change in the concession contract with Narrowness Siguasfrom Cobra.